Rollins hits over 1-year low as UK's Rentokil warns of N.America weakness

Rollins

19/10/2023 18:14

(Updates)
    ** Pest control company Rollins'  ROL.N  shares fall as much
as 10.2% to an over one-year low of $32.27 
   ** British peer Rentokil Initial's shares  RTO.L  slumped to
its worst day since July 25, 2008, after the company warned of
weakness in its biggest market, North America, citing "near-term
market uncertainty"
    ** RTO forecasts annual adj operating margin of 18.5%-19%
for North America vs previous guidance of about 19.5%; the
region accounted for nearly half of its revenue in 2022
    ** Spruce Point Capital Management, which had said earlier
this month that it was short on Rollins on concerns over cash
flow and leveraged acquisitions, reiterated its "strong sell"
opinion on ROL on Thursday
        ** ROL reports Q3 results after market closes on
Wednesday, Oct. 25
  
    ** As of last close, ROL down 1.7% YTD 

 (Reporting by Sruthi Shankar and Juveria Tabassum in Bengaluru)
 ((sruthi.shankar@thomsonreuters.com;))